Bitcoin and the entire crypto markets have faced increased selling pressure today after experiencing a short bout of sideways trading as BTC struggled to decisively move into the $8,000 region.
Although today’s drop has slightly shifted the overall market sentiment for the worse, analysts are now noting that Bitcoin may be nearing a price at which it garners significant buying pressure that allows it to surge higher.
Bitcoin Nears $7,700 as Selling Pressure Ramps Up
At the time of writing, Bitcoin is trading down nearly 2% at its current price of $7,750, down from 24-hour highs of $7,900.
Importantly, Bitcoin did bounce slightly today once it hit lows of $7,500, signaling that this price level is a region of support. Despite this, the bounce that resulted from the drop to $7,500 has been somewhat weak, which may signal that BTC will revisit this price level in the near-future.
Despite this, Josh Rager, a popular cryptocurrency trader on Twitter, explained that Bitcoin is still caught within a condensing formation, which likely signals that it will continue trading relatively sideways for the foreseeable future until it makes another massive movement.
“$BTC still in this condensing formation and held by horizontal supports. Not a lot has changed which shows that you don’t have to stare at charts all day – waiting for that next massive candle. I’m out for the night – have a great evening/day,” Rager explained.
$BTC still in this condensing formation and held by horizontal supports
Not a lot has changed which shows that you don't have to stare at charts all day – waiting for that next massive candle
I'm out for the night – have a great evening/day pic.twitter.com/Y3i8DndpgB